Imperial Oil (Imperial Oil) Interest Coverage : 92.05 (As of Dec. 2023)

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What is Imperial Oil Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Imperial Oil's Operating Income for the three months ended in Dec. 2023 was $1,235 Mil. Imperial Oil's Interest Expense for the three months ended in Dec. 2023 was $-13 Mil. Imperial Oil's interest coverage for the quarter that ended in Dec. 2023 was 92.05. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Imperial Oil's Interest Coverage or its related term are showing as below:

IMO' s Interest Coverage Range Over the Past 10 Years
Min: 2.83 Med: 46.92 Max: 1072.5
Current: 89.43

IMO's Interest Coverage is ranked better than
83% of 759 companies
in the Oil & Gas industry
Industry Median: 6.72 vs IMO: 89.43

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Imperial Oil Interest Coverage Historical Data

The historical data trend for Imperial Oil's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Imperial Oil Interest Coverage Chart

Imperial Oil Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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21.94

60.28

154.78

89.44

Imperial Oil Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial															86.61	99.82	52.81	109.05	92.05

Competitive Comparison of Imperial Oil's Interest Coverage

For the Oil & Gas Integrated subindustry, Imperial Oil's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Imperial Oil's Interest Coverage Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Imperial Oil's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Imperial Oil's Interest Coverage falls into.

Imperial Oil Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Imperial Oil's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Imperial Oil's Interest Expense was $-51 Mil. Its Operating Income was $4,600 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,072 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	4599.732	/	-51.431
	=	89.44

Imperial Oil's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Imperial Oil's Interest Expense was $-13 Mil. Its Operating Income was $1,235 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,072 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	1235.092	/	-13.417
	=	92.05

The higher the ratio, the stronger the company's Financial Strength is.

Imperial Oil (AMEX:IMO) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Imperial Oil Interest Coverage Related Terms

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Imperial Oil (Imperial Oil) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Imperial Oil Ltd (AMEX:IMO) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

IMP:Germany IMO:Canada

Address

505 Quarry Park Boulevard S.E, Calgary, AB, CAN, T2C 5N1

Website

https://www.imperialoil.ca

Imperial Oil is one of Canada's largest integrated oil companies, focusing on upstream operations, petroleum refining operations, and the marketing of petroleum products. Production averaged 398 thousand barrels of oil equivalent per day in 2020. The company estimates that it holds 5.2 billion boe of proved and probable crude oil and natural gas reserves. Imperial remains the largest refiner of petroleum products in Canada, operating three refineries with a combined processing capacity of 421 mboe/d. The Upstream segment operates to produce crude oil and its equivalent, and natural gas. The Downstream segment operates to refine crude oil into petroleum products. The Chemical segment manufactures hydrocarbon-based chemicals and chemical products.